ECONOMICS

Detailed explanation-1: -Based on behavior, costs are categorized as either fixed, variable or mixed. Fixed costs are constant regardless of activity level, variable costs change proportionately with output and mixed costs are a combination of both.

Detailed explanation-2: -Fixed costs remain the same no matter how many units you produce or sell. Variable costs are directly tied to your sales and production. They fluctuate as your output increases and decreases. Mixed costs are a combination of your fixed and variable costs.

Detailed explanation-3: -Cost behaviours break down into four expense classifications: variable, fixed, step, and mixed costs.

Detailed explanation-4: -Answer: The three basic cost behavior patterns are known as variable, fixed, and mixed.

Detailed explanation-5: -For example, if a company’s monthly office space rent is $10, 000 and their monthly utilities bill is $500, then their total monthly cost would be $10, 500. In this case, the rent would be the fixed cost and the utilities would be the variable cost. Together they would make up the mixed cost.